3 ASX dividend shares perfect for retirees

Analysts think these shares could be quality picks for retirees.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're a retiree looking for reliable passive income, ASX dividend shares can be a great way to generate cash flow without selling down your investments.

Fortunately, some high-quality dividend shares currently offer attractive yields and fully franked payouts, making them ideal for retirees.

Here are three that analysts rate as buys right now.

Couple holding a piggy bank, symbolising superannuation.

Image source: Getty Images

Endeavour Group Ltd (ASX: EDV)

Analysts at Goldman Sachs believe Endeavour Group could be a solid ASX dividend share for retirees to buy right now. This drinks giant owns well-known brands like Dan Murphy's and BWS and has a significant presence in the hotels (pubs) sector. Its defensive positioning in the market arguably makes it an appealing option for retirees seeking stable dividends.

Speaking of which, Goldman Sachs expects Endeavour to pay fully franked dividends of 19 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on the current Endeavour share price of $4.45, this equates to dividend yields of 4.3% and 4.9%, respectively.

And with a buy rating and $5.10 price target, Goldman sees upside potential in addition to a steady income stream.

Smartgroup Corporation Ltd (ASX: SIQ)

Another ASX dividend share tipped as a buy is Smartgroup. This company provides employee benefits, fleet management, and software solutions, making it a resilient business with defensive qualities.

Bell Potter is particularly bullish on Smartgroup due to its stable operations, positive industry tailwinds, and attractive valuation.

As for income, the broker is forecasting fully franked dividends of 53.3 cents per share in FY 2024 and then 59.7 cents per share in FY 2025. Based on its current share price of $7.81, these payouts represent generous dividend yields of 6.8% and 7.6%, respectively.

Bell Potter currently has a buy rating on Smartgroup's shares with a price target of $10.00.

Telstra Group Ltd (ASX: TLS)

Finally, Telstra is another ASX dividend share that Goldman Sachs believes is worth considering. As Australia's largest telco, Telstra benefits from its essential services and strong market position, which helps support consistent dividend payments.

Goldman Sachs forecasts fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on Telstra's current share price of $4.15, this equates to dividend yields of 4.6% and 4.8%, respectively.

The broker also feels Telstra's shares are good value right now. It has a buy rating and $4.50 price target on them.

Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Smartgroup and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A little boy in flying goggles and wings rides high on his mum's back with blue skies above.
Opinions

Why I think now is a great time to buy Qantas shares for long-term passive income

Qantas shares are now trading on a fully franked dividend yield of 5.5%.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Dividend Investing

Don't want to rely on your wage? Build a second income with these ASX shares

Dividend payments can supplement a wage, here are two top contenders for goal.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Retirees, check out this new $330m listed investment company which aims to pay monthly fully franked dividends

If you're looking for income, this might be just the thing.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Dividend Investing

2 ASX dividend stocks Morgans rates as buys

Let's see what the broker is bullish on this month.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

Here's how much I'd need to invest in BHP shares to generate a $100 monthly income

BHP is one of the ASX’s top dividend payers and could be a good option for income investors.

Read more »

Dividend Investing

These buy-rated ASX dividend shares offer 7% to 8% yields

Morgans is expecting some big dividend yields from these shares.

Read more »

Woman in bed rolls over to hit clock
Dividend Investing

14 ASX shares about to go ex-dividend

Stocks going ex-dividend include Flight Centre, Perenti, NRW Holdings, and Service Stream.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Santos shares do I need to buy for $10,000 a year in passive income?

Santos shares have delivered two yearly dividend payouts since 2019.

Read more »